NAVKETAN ENTERPRISES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) A very short point is involved for consideration in this case. The petitioner challenges the initiation of proceedings under Section 147 of the Income Tax Act and with regard to the issuance of the Notices in terms of Section 148 of the Income Tax Act, 1961 on the ground that the Assessing Officer has wrongly obtained the approval of the Joint Commissioner before issuing the impugned notices whereas he should have obtained the approval of the Board because that was the requirement of law as it stood in the year 1988, relating to the Assessment Year 1988-89.

(2.) ADMITTEDLY the petitioner received a notice in terms of Section 148 of the Income Tax Act. 1961 (the notice is dated 8.12.1998) whereby the petitioner was informed by the Assessing Officer that he had reasons to believe that his income chargeable to tax for the Assessment Year 1988-89 had escaped assessment within the meaning of Section 147 of the Act and that, therefore, the Assessing Officer proposed to reassess the income for the aforesaid assessment year and accordingly notice under Section 148 of the Act was issued asking the petitioner to deliver to the Assessing Officer within 30 days from the date of service of the notice return in the prescribed form of his Income for the relevant Assessment Year.

(3.) WHEREAS Sub-section (1) of Section 151 deals with only such cases where the assessment earlier was made under Section 143(3) or under Section 147 of the Act, subsection (2) deals with all other assessments which were earlier made, but which were sought to be reopened under Section 147 of the Act. In this case, since the assessment for the year 1988-89 was made in terms of Section 143(1) of the Act, we are concerned only with Sub-section (2) of Section 151 of the Act.